Moody’s gives Infinite Electronics B3

Moody’s Investors Service said it gave a first-time B3 corporate family rating and a B3-PD probability of default rating to Infinite Bidco LLC (Infinite Electronics).

Moody’s also assigned a B2 rating to the proposed $740 million first-lien credit facilities, including a $100 million revolver and a $640 million term loan, and a Caa2 rating to the proposed $240 million second-lien term loan.

“Infinite’s B3 CFR reflects very high debt to EBITDA of 8.2x (including Moody’s standard adjustments) at closing and a track record for maintaining adjusted leverage above 7x reflecting historical debt-funded acquisitions or growth investments,” the agency said in a press release.

Proceeds, rollover equity and new sponsor equity will be used to fund the acquisition of Infinite Electronics by Warburg Pincus LLC. In addition, Infinite will be provided with a privately-placed $55 million delayed draw, first-lien term loan and a privately-placed $20 million delayed draw second-lien term loan.

The outlook is stable.

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